Key Highlights
- AKITA Drilling reported third-quarter revenue of $69.2 million, up 55% year over year.
- The company posted a third-quarter net loss of $2.8 million, versus net income in 2025.
- United States operating days rose 54% to 896, with higher revenue per day.
AKITA Drilling Ltd. (TSX: AKT) reported higher third-quarter revenue but a net loss for the three months ended September 30, 2026, as stronger United States drilling activity and the contribution from the Fox Drilling acquisition were partly offset by lower Canadian margins and higher costs.
Revenue rose 55% to $69,177,000 from $44,604,000 a year earlier. AKITA said the year-over-year comparison is affected by a change in accounting policy that now includes revenue from joint venture drilling rigs within 2026 revenue, while those rigs were reported differently in 2025.
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AKITA reported a net loss of $2,817,000, or $0.05 per common share (basic and diluted), compared with net income of $1,545,000, or $0.04 per share, in the prior-year quarter. The quarter included $2,022,000 of one-time costs to relocate a rig from the US to Canada; the company said the rig arrived in Canada after quarter end.
For the first nine months of 2026, AKITA reported a net loss of $11,077,000 ($0.25 per common share, basic and diluted), compared with net income of $12,474,000 ($0.31 per share) in the corresponding period of 2025.
United States activity and day rates
AKITA reported that US operating days increased 54% to 896 in the third quarter, compared with 583 a year earlier. Adjusted revenue per operating day increased to $38,798 from $37,437 in the third quarter of 2025 and from $35,216 in the second quarter of 2026, which the company attributed to rigs being re-contracted at higher rates during the quarter.
In the US division, adjusted operating margin increased 13% to $6,441,000, as higher activity more than offset lower margin per operating day. AKITA said it had 12 active US rigs at September 30, 2026, up from five at the beginning of the year, after a peak of 14 active rigs in July.
Fox Drilling acquisition and Canadian operations
AKITA said the third quarter was the first full quarter following its June 30, 2026 acquisition of Fox Drilling. The six acquired AC triple rigs, including five high-specification walking triples, expanded AKITA’s Canadian fleet to 23 rigs. The company said the Fox rigs contributed 40% of Canadian division revenue in the quarter, helping offset delayed reactivations within its existing Canadian fleet.
Canadian adjusted revenue was $27,727,000 in the third quarter, and operating days were 718 versus 715 a year earlier. Canadian adjusted operating margin fell 22% to $6,091,000, which AKITA attributed to higher costs including additional personnel following the Fox acquisition, operating support for its Canadian capital program, and one-time expenses it does not expect to recur.
AKITA said it expects Canadian activity to improve in the fourth quarter of 2026 and into the first quarter of 2027, supported by demand for high-specification triple rigs serving oil sands and deep natural gas programs. In the US, the company said anticipated customer programs are expected to support an increase in the active rig count over the next six months, with further day-rate improvements possible, though timing and extent remain uncertain.
On cash flow and balance sheet items, net cash used in operating activities was $296,000 in the third quarter, compared with net cash from operating activities of $5,663,000 a year earlier. Capital expenditures totalled $10,444,000 in the quarter, and total debt was $49,245,000 at September 30, 2026, compared with $39,674,000 a year earlier. The release did not specify the currency for these amounts.
The original press release is available on stockhouse.com
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